Thursday, October 19

Drought

Australia is currently in the grip of the worst drought ever faced. The current El Nino weather pattern ensures the dry conditions will continue as we experience much lower than normal rains. Longer term the prognosis remains clouded. Some assert this drought is a natural part of our landscape whilst others contend drier conditions represent the flow on effects of global warming.

Barry Hanstrom, NSW regional director of the Bureau of Meteorology is concerned: The evidence for climate change is compelling, in several examples of that across Australia. The fact is that south-west Western Australia since the 70s has dropped almost 20 per cent. The last 10 years in south-eastern Australia the rainfall's down 10 to 20 per cent. 2005 was the warmest year ever recorded in Australia, so there are strong indications, both with rainfall and temperature across Australia that the climate is changing.The current position means crops like wheat and barley are likely to yield at most 30% of last year and the effect to country areas is devastating. Increased suicides and depression arise with Rural Councillors streched to the limit, but notwithstanding most remain focused to change what they can for the better, to stay positive and look forward to next years season.It’s also hard for city folk to imagine the devastation of a crippling drought in country towns.

The response of the Government was to announce an extra $350 million for farmers and to confirm they are considering a further $400 million, having already spent $1.25 billion on needy 50,000 farming families since 2001.

The basis of this relief is “exceptional circumstances” since normal drought is expected to be managed by farmers.

Water scientist Professor Peter Cullen, has been quoted has suggested such aid only prolongs producers struggling on land no longer sustainable. Clive Hamilton from the Australia Institute was quoted as saying “Farmers shouldn't be getting assistance; they should be leaving the land when it's like this?”

The debate has raged, as if fanned by our recent hot northerly winds, the familiar smell of smoke from earlier tham expected bush fires.

Our Prime Minister commented.

Well, I reject that completely. I reject it. I mean, the basis of his argument is that in some way the payments farmers receive under Exceptional Circumstances represent us paying people to stay on the land. I think that would come as a great surprise to farmers, who know that the Exceptional Circumstances gives them the equivalent of the dole and provides some interest rate subsidies. And that's hardly paying people to stay on the land. "It is, in many cases, paying people to put some food on the table. It's a very unrealistic attitude for people to take. We are not a country that pays people to stay on the land. We're a country that gives people who want to stay on the land support to survive through desperate drought circumstances, and that's what we're living through at the present time. So I reject completely the argument that this drought assistance is, quote, 'paying to keep people on the land', unquote.

It’s a complex situation but I feel the current position is not enhanced by the current aid programme. Consider the value of rural land in Australia and indeed in many parts of the western world and why it is is vastly overpriced. This is a consequence of continued income support to farmers over successive frequent droughts that ensures the price of land reamains unrealistically high. Overseas huge subsidies paid to farmers inflate the value of the land.

Rural land in Australia has appreciated in real terms around 5-6%, thats 5-6 % above the rate of inflation over the past 20 years, putting undue pressure to obtain a commensurate improved return.

I also think Australian farmers are the most efficient in the world and most are responsible environmentalists who do a magnificent job looking after the land for future generations. During dire times such as we are currently experiencing they immediately begin de stocking and mitigating the effect of drought,in other words caring for the land. Many are debt free 3rd generation farmers whose reserves and or alternative incomes tide then through these most difficult of times.

What I favour as an alternative to income support is government assistance in the form of interest free loans, made during such times but to be repaid during good seasons. I think most farmers would prefer a loan to income support schemes, which is nothing more than a handout.

I also think additionally its worth considering a heritage type annual payment, in recognition of the Farmer custodian role of looking the land, that's on on our behalf to preserve it for future generations.

On the longer terms I believe the current exceptional circumstances will not be so exceptional in years to come, but I also believe the Australians farmers will adapt and cotinine to preserve the land for future generations in a sustainable way. That means much more diversity for Farms, a sole farming income will be unsustainable, and other income streams will need to be added for it to be viable overall as we experience drier conditions. This is already occurring to a marked degree and will accelerate in the near future. In effect it will be engaging of country and the city, with new industries such as echo tourism, as it always could have been. The dichotomy or tension between country and city, farming and non framing and or industry need not exist at all as we are all co dependant upon one to another.

In fact I think it wil be true for most countries the world over. The pooling of skils and sharing between communities, that is between country and city, allows us us to learn together as to how to be sustainable, in partnership with nature. It's how we evolved and its how we will survive the future.

We are experiencing a similar situation here in British Columbia. The town of Tofino on the West Coast of Vancouver Island ran out of water this summer. And Vancouver Island is the heart of the rain forest. I'm finding myself being a bit alarmed about it.

Very thoughtful post Lindsay. It's a complex issue and probably underneath the larger issue of where will climate change take us. In my part of Canada, a single pest (pine beetle) has destroyed hundreds of thousands of hectares of foest. This is mainly because the control mechanism for this insect is prolonged winter cold - absent for many years now.

I'm pleased that you 'stand up' for the integrity of the farmers and the land in your post.

I think we all share the same concern about the consequences of global warming and our respective environments. Thanks for your comments and for pointing out concerns. Maybe I can say in the very cold areas, its also getting much dryer !! and the water table is dropping !!

The situation in Australia is very complex. From 1900 to 1930 it’s was very dry but we were lulled into sense of false security between 1931-1990, unusually wet. Now we are likely to undergo a prolonged dry period which coupled with the effects of global warming gives cause to concern.

Even so I remain positive measures can be taken to mitigate the effects of drought.

The aspect you refer to Gary is yet another unforeseen consequence to changing climate. Unfortunately I fear many more shocks to come.

About Me

I have worked in the roles as Company Secretary or Divisional financial executive with larger Australian based multinational companies before changing careers in favour of sales and marketing for the latter 12 years of business life.
My particular interests include corporate social responsibility, ethics and research into more sustainable business practices.
I am a fellow of CPA Australia and an Associate member of the Governance Institute of Australia which was previously called the Chartered Secretaries Australia. I am chairman of the Malawi Support group who are a small group of catholic parishioners who raise funds to support a sister parish in Malawi.